Analysts from Bloomberg have a positive opinion that cryptocurrency exchange-traded funds or ETFs will receive approval from the US Securities and Exchange Commission (SEC) in 2025.
Crypto investors may have more options next year when it comes to publicly traded crypto securities, one of which could be a combination of Bitcoin and Ethereum.
The Wave Of Crypto ETFs
Two Bloomberg analysts expect that exchange-traded funds – XRP and Solana in particular- will quickly flood the cryptocurrency space as they foresee that the SEC will approve several of these investment instruments next year.
“We expect a wave of cryptocurrency ETFs next year, although not at the same time,”Eric Balchunas, one of Bloomberg’s analysts, in a post.
A mood of optimism continues to surround the crypto market as the incoming administration of US President-elect Donald Trump indicates that current SEC Chairman Gary Gensler will step down from his office.
We expect a wave of cryptocurrency ETFs next year, but not all at once. First exit will likely be btc + eth combo ETFs, then prob Litecoin (bc its btc fork = asset), then HBAR (bc unlabeled security) then XRP/Solana (labeled securities still waiting… pic.twitter.com/29vMdciZxE
— Eric Balchunas (@EricBalchunas) December 17, 2024
Gensler has been seen as an anti-crypto state official who has implemented strict regulations in the cryptocurrency space that have hindered the growth of digital assets in the US.
Many crypto traders have high hopes that Trump will appoint a new head of the SEC who will be more open to crypto exchange-traded funds.
The best Bitcoin-Ethereum ETF exchange
Balchunas and fellow Bloomberg analyst James Seyffart believe that an exchange-traded fund combining Bitcoin and Ethereum will be the first crypto-based securities to get the green light from the SEC.
“Two ETFs for bitcoin and ethereum from Hashdex, Franklin [Templeton] and Bitwise will likely be the next place for crypto ETFs to be approved,” Seyffart said in a post.
Asset managers from Bitwise, Hashdex, and Franklin Templeton are awaiting the launch of this exchange-traded fund that combines two cryptocurrencies and a large market capitalization. Therefore, these asset managers have already expressed their interest in issuing traded securities.
Earlier this year, the SEC approved a Bitcoin ETF in January and an Ethereum one in July. Meanwhile, the new exchange-traded fund will be the first time two major cryptos have been combined into a single tradable security.
Expect XRP-Solana Delays
Some crypto analysts say that the ETF that combines XRP and Solana may have to wait a while, expecting that the current administration of the SEC will not allow securities to be traded since these digital assets were involved in legal battles where XRP and Solana were defined as securities. .
Eleanor Terrett, a business reporter, noted that two of Solana’s five exchange-traded fund applications have been rejected by current SEC leadership this month.
Meanwhile, Balchunas and Seyffart still hope that the combined securities of XRP and Solana will get the go-ahead from the new SEC administration.
“Both Solana and the XRP ETF will have to wait until the new SEC administration takes control before they can be seriously considered,” notes Seyfart.
Featured image from Reuters, chart from TradingView